Palo Alto Networks Inc (NYSE: PANW) is trading up in extended hours after reporting strong results for its first financial quarter, indicating continued spending on network security in the face of impending recession.
Palo Alto Networks ended the quarter with $8.30 billion of remaining performance obligations – a 38% increase when compared to Q1 of 2022.
For the current financial quarter Palo Alto Networks forecasts $1.63 billion to $1.66 billion in revenue, up to $1.99 billion worth of billings, and 76 cents to 78 cents of adjusted EPS, as per the earnings press release.
In comparison, analysts were at $1.65 billion for revenue and 71 cents for adjusted per-share earnings. Palo Alto Networks shares are still down more than 20% versus their year-to-date high.
The cybersecurity stock jumped also because Palo Alto Networks said it will buy Cider Security for $195 million in cash. The transaction is expected to complete in Q2. According to CEO Nikesh Arora:
We’re focused on expanding the breadth of our offerings and our pace of innovation to continue to drive share gains in the cybersecurity market.
Wall Street currently has a consensus “buy” rating on Palo Alto Networks shares.
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